The short-term strategy of Stellar is to focus on production and cash flow from the Mandala and Bomboko projects. The Company will allocate additional capital to improve the earth moving capacity at both mines in Q2-10, with the objective of increasing carat production as well as reducing the cost per carat produced. A number of cost saving synergies arising from the close geographical proximity of the Bomboko and Mandala projects have also been identified and this will lead further cost savings which are expected to impact positively on the project revenues and margins.

The medium term strategy of the Company is to continue the development of its advanced, high-grade kimberlite projects at Tongo and Kono (in Sierra Leone), Droujba and Bouro (in Guinea). All of these kimberlites demonstrate early economic potential and drilling and large-scale bulk sampling programmes are being implemented on each kimberlite in order to determine the diamond grade and value. The objective is for Stellar to generate positive pre-feasilibilty reports for each project within 18-24 months.